Solved: How do I report pension income paid for restitution?
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How do I report pension income paid for restitution?

My sister signed her pension over towards her federal restitution.  How do I reflect that on her taxes?

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Level 7

How do I report pension income paid for restitution?

She should receive a 1099-R for the pension which is reported as income.  There are no tax deductions for federal restitution.

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Level 7

How do I report pension income paid for restitution?

She should receive a 1099-R for the pension which is reported as income.  There are no tax deductions for federal restitution.

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**Mark the post that answers your question by clicking on "Mark as Best Answer"

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New Member

How do I report pension income paid for restitution?

She did receive a 1099-R and taxes were taken out.  Is there an exemption for early withdrawal to pay this?
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Level 7

How do I report pension income paid for restitution?

Yes, unfortunately, she will probably have to pay the penalty because it does not fit into an exception.  Was she forced to get the money from the pension?
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New Member

How do I report pension income paid for restitution?

It was her decision to take her pension and apply it towards the restitution.
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